How often do interchange rates change? | Payment Gods Forum

Hi MobilePayMary, I totally get why you're feeling frustrated when processing fees suddenly jump. It can be really confusing, especially when you're focused on running a great business like "Mary's Morning Joe." Let's talk about how often interchange rates change and what you can do about it. First off, it’s a great question, and the short answer is that interchange rates typically change twice a year, in April and October. These changes are set by the card brands like Visa and Mastercard. It’s not uncommon for merchants, especially newer ones, to see their overall processing costs fluctuate as these interchange rate adjustments ripple through their merchant account statements. So, a jump last month could very well be related to one of these semi-annual updates to the interchange rates. Now, while the card brands update their interchange rates twice a year, the actual impact on your processing fees can vary depending on your payment processor and the pricing model they use. Some processors might pass through the exact changes transparently, while others might adjust their markups or monthly fees at different times. That’s why it’s so important to regularly review your statements and understand your credit card processing agreement. Understanding how often interchange rates change is just one piece of the puzzle. You also need to consider other factors like assessment fees from the card brands, which also change periodically, and the processor’s own markup. If you’re on a tiered pricing model, for example, a slight shift in how a transaction is categorized by the card network due to an interchange rate update could push it into a higher, more expensive tier for you. This is why many experts recommend interchange plus pricing, as it offers greater transparency by separating the interchange cost from the processor's margin. For businesses like yours, a mobile coffee cart, it’s crucial to have a payment gateway and merchant services provider that offers competitive rates and transparent pricing. The Payment Gods Partner Network specializes in helping businesses get the best possible processing fees. Many of our partners offer rates starting around 1.5% for qualified transactions. We can absolutely help you understand why your fees increased and find a solution that works for you. You can get a free, no-obligation rate analysis and quote by visiting paymentgods.com/get-quote. Don't let fee fluctuations keep you guessing, MobilePayMary. By understanding how often interchange rates change and partnering with the right payment processing experts, you can keep a much better handle on your costs and focus on brewing that great coffee for your customers! We’re here to help you navigate the complexities of credit card processing. Feel free to ask any other questions you have. We can help you identify if recent interchange rate changes are the primary driver of your increased processing costs.